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Friday, March 18, 2011

United Bank of India (UBI) on Thursday said it was expecting the government to infuse Rs 308 crore into the bank by the end of this month. The infusion will be part of the government’s recapitalisation programme wherein it was injecting funds into public sector banks to shore up their capital adequacy ratio.

“We hope to have a capital infusion of Rs 308 crore by the end of March,” said Bhaskar Sen, chairman and managing director, United Bank of India.

Asked about the fundraising plans of the Kolkata-based lender, which got listed last year, Sen said there was headroom, but the bank would take a call (on the follow-on public issue) by the end of the next financial year. He ruled out possibility of an FPO this year.

The government holds 84 per cent in the bank. Capital infusion will take place through preferential allotment of equity and would raise the government's holding.

Asked about the impact of the policy rates’ rise on the bank’s lending and deposit rates, Sen said a call on revising the base rate would be taken next week.